TANMIYAT AL-RAFIDAIN

Abstract

Abstract
Using the ratios of cash flow and profitability is regarded as one of the most important means through which the performance of a bank can be evaluated in order to obtain the best possible method of performance, because the numbers in the financial lists have no reflecting – clearly - the real financial position, so the ratios of cash flow and profitability clarify the important relations amongst the numbers in the lists. The importance of the study comes from the importance of analysis using the ratios of cash flow and profitability, which is considered the most common used technique in evaluating the bank financial performance as an indicator to what was achieved by the bank comparing to the previous periods to identify the financial position throughout the period of the study. The study aims at evaluating the performances of the banks by identifying the financial ratios and indicators used in the evaluation process and then using them in evaluating the banks within the study. The problem of the research lies in the new economic situation that our country is passing through the existence of many private and state banks. So that needs to evaluate the financial performance of the banks to identify the weakness and lack points in order to avoid them and identify the positive points to maintain the activity of the bank to gain the best results within the strong contest.
The study relies of the hypothesis that using the ratios of cash flow and profitability in the bank performance will eventually lead to discover the points of strength and weakness in the sample bank performance. The study and the indicators showed that the best year was 2002, then the year 2004 in the second class and 2003 in the third. And that was because our country underwent hard events in 2003 including vandalism, looting and bad conditions. In spite of all what has been taken place, the bank recovered in 2004.

2004.